Returning From Parental Leave Can Be Stressful. How Some Employers Aim to Fix That.
Companies increasingly are creating formal ‘reboarding’ programs to help new parents transition back to work more easily
Companies increasingly are creating formal ‘reboarding’ programs to help new parents transition back to work more easily
Sarah Tucker-Ray, a partner in McKinsey’s Washington, D.C., office, felt a lot of trepidation when she took a six-month parental leave in 2022.
“There is fear about, ‘Am I going to get written out of the story?’ ” says the 36-year-old Tucker-Ray, whose daughter, Viviana, was born in August 2022. “Is someone going to step in for me and take over? How will I come back?”
She addressed those fears in a reintegration plan that she drafted before going on leave. It included instructions for those who would be covering her workload while she was out, and it laid out what she wanted her job to look like when she returned. For example, Tucker-Ray didn’t want her role to change significantly, but she asked to not be given any internal projects—those focused on McKinsey’s own operations versus those of outside clients—during her first six months back. She also thought about small stuff, such as writing down all of her passwords, and she connected with other working mothers at the company who served as peer counselors before she went on leave.
“They told me that the goal for week one is to get dressed, have breakfast with my baby, get into a suit without getting spilled on and get out the door,” she says. “It sounds so basic but I hadn’t had to do that yet.”
The days, weeks, and months after a new parent returns to work after leave can be a critical and challenging time for an employee. Many experience anxiety about how they are going to manage work and parenting, and some end up feeling like a failure at both.
To address that, some organisations have launched formal “reboarding” programs that structure those first months back after leave so they aren’t overwhelming for new parents, while also providing them with emotional support. McKinsey tested such a program in Europe and then expanded it globally
Many see it as a business imperative. Organisations are making substantial investments in paid maternity and paternity leave—in 2023, 40% of organisations in a Society for Human Resource Management survey offered paid maternity leave and 32% offered paid paternity leave—and they want to ensure new parents return to work and are productive and content when they do.
A successful reboarding program requires planning, and it and starts long before an employee goes on leave, consultants and HR leaders say. It begins with mapping out a comprehensive work-coverage plan, including if and under what circumstances the employee wants to be contacted about work while out on leave. The plan also should create clear expectations about what the return-to-work will look like, including the employee’s job description post-leave and even an explanation of what that first daunting day back might entail.
Many reboarding programs also connect new moms with experienced working parents or colleagues who have recently returned from parental leaves, as well as a coach (often an outside consultant) who can help set priorities and guidance on best practices.
When Maria del Mar Martinez became head of McKinsey’s diversity, equity and inclusion efforts in Europe in 2018, she learned that working moms left the management-consulting firm at nearly double the rate of their childless female peers with similar tenure. In exit interviews, women shared common grievances, including the challenge of balancing parenthood with a demanding job, a lack of support from their managers and few role models.
She heard similar sentiments in Asia and the U.S.
“That was a business problem,” says del Mar Martinez, now the global head of DEI at McKinsey. “I don’t want to lose those amazing women coming up the pipeline.”
To combat attrition, del Mar Martinez created a reboarding pilot program in Europe that included coaching employees before, during and after a parental leave. (Men are eligible to take part in the program if they have taken 12 weeks or more of leave.)
Built into the plan was a guarantee that new parents would have “meaningful work” upon their return, with the option of slowing down if that’s what they wanted, says del Mar Martinez. One issue, she and others say, is that managers often incorrectly assume that new mothers want lighter workloads or don’t want to travel, which is why it’s important for employees to spell out their preferences in a reboarding plan.
The McKinsey pilot required managers to confirm they understood their employee’s reintegration plan and to calibrate goals in performance reviews to ensure the person taking leave wouldn’t be penalised.
It worked. McKinsey closed the European attrition gap in 18 months, del Mar Martinez says, and later expanded the program globally.
Other companies are increasing the support they offer to new parents, too, including Wall Street’s Morgan Stanley, which in 2019 appointed Allyson Bronner head of family advocacy at the company’s institutional division, a full-time position that focuses on supporting employees before, during and after parental leaves.
Bronner says one of the best ways to ensure a successful return experience for new parents is to include managers in the process.
To that end, she meets with an expecting employee’s manager between the 25th and 30th week of pregnancy to preview what the employee’s return-to-work will look like and discuss best practices for easing the transition.
“It’s important to set the scene and give them tools to manage their employees,” she says.
She says her next meeting with the manager occurs about a month before the employee is due back to discuss how the first month should be structured. She suggests the manager call the new parent two to three weeks ahead to preview what the first few days back will look like—namely, checking email and showing colleagues baby pictures.
The support continues throughout the first several months, with managers having weekly check-ins with the employee for the first six weeks and then monthly check-ins after that. Bronner encourages managers to ask new parents how they are doing and how their child care is going to determine whether they would benefit from more support or advice in that area.
Since Morgan Stanley created the family advocacy role, “it feels like there has been a culture shift,” Bronner says. “It’s hard to quantify in numbers, but culturally it feels like we’re moving in a more positive direction.”
A culture shift is also under way at chip-equipment maker ASML, which recently expanded the paid parental leave it offers and in May joined forces with employee-benefits firm Parentaly to create a support system for new parents.
ASML is in a male-dominated industry, says Karen Reinhardt, the firm’s chief human-resource officer in the U.S., so retaining women is critical to having a diverse workforce.
As of December, 82 employees had registered for the reboarding program, “more people than we expected,” Reinhardt says.
Among them is Meredith Polm Sheain of San Diego, a knowledge-management developer who went out on maternity leave in late August. In her reboarding plan, she made clear that she wanted to be notified while on leave about any bumps in a recently launched product. She also laid out her priorities for the first two months of her return.
“I felt so much better about the concept of returning to work once I gave my team this plan,” says Polm Sheain, who returned to work on Dec. 22. “I left them and myself in the best position I could.”
Reboarding isn’t the only new benefit companies are offering to make life easier for new parents.
McKinsey’s Tucker-Ray was asked to attend a partner conference in Atlanta about six weeks after returning from maternity leave. The firm covered the cost of her daughter and caregiver (her husband) to join her on the trip since she was still breast-feeding.
“I would have been torn about going away for nearly a week for an internal event but it became a nonevent,” she says. “It got rid of the barrier to feeling you can’t participate fully in parenting and be a leader.”
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Super isn’t your only option. These smart strategies can help you self-fund a comfortable retirement.
Super isn’t your only option. These smart strategies can help you self-fund a comfortable retirement.
Superannuation is the first thought when it comes to self-funding retirement. Yet it is hardly the only option for doing so.
Just as we have a choice in how and where we work to earn a living, many people also have a choice in how to fund their retirement.
It is possible and sometimes preferable to leave your superannuation untouched, allowing it to continue growing. Some or all of your income can come from alternative sources instead.
Here are some alternatives you can consider.
For many who own their own homes, the equity accrued over decades can eclipse the funds in superannuation. However, it’s theoretical money only until it is unlocked.
Selling up the family home and downsizing – or rightsizing – for retirement allows you to pocket those gains tax-free and simultaneously relocate to a more suitable home with lower upkeep costs.
Up to $300,000 from the proceeds can be contributed by a downsizer to boost your super, and the remainder can be used to fund living expenses or actively invested.
Remember that while the sale proceeds of your home are tax-free, any future profits or interest earned from that money will be taxable.
Semi-retirement allows you to gradually step into retirement. You continue earning income and super while working part-time, keeping a foot in the workforce while testing the waters of your new found free time.
Doing so also offers scope to move into different roles, such as passing on your skills to future generations by teaching/training others in your field of expertise, or taking employment in a new area that interests you and is closer to home.
Retirement from a full-time position presents a good opportunity to pursue self-employment. With more time and fewer commitments on your hands, you have greater scope to turn your hobby into a business or leverage your professional skills and reputation as an external consultant.
Also, for the self-employed and those with a family business, director’s loan repayments from the company are typically tax-free, offering a potentially lucrative source of
income and a means of extracting previous investments into the business without selling your ownership stake.
Rental property income (from residential or commercial properties) can supplement or even provide a generous source of income. The same applies to dividends from shares.
These are likely to be more profitable if you own them well before retirement.
Income that is surplus to your everyday needs can be reinvested using tax-effective strategies to grow your future returns.
A family trust could be used to house investments for yourself and other relatives, building intergenerational wealth.
Trusts allow funds to be allocated to beneficiaries to manage marginal tax rates and stretch the money further, you have control over how income is split between different family members and have flexibility for changing circumstances.
You may not realise the value of items you have collected over the years, such as wine, artwork, jewellery, vintage cars, and antiques.
Rather than have them collect dust or pay to store them, they could be sold to fund your living costs or new investments.
Where possible, avoid selling growth assets in a depressed market – wait until you can extract maximum value.
Part-pensions are not only possible but valuable in making your superannuation stretch further. They still entitle you to a concession card with benefits in healthcare, transport, and more.
Take these savings even further by requesting pensioner discounts with other companies, on everything from utilities to travel and insurance to eating out.
Also, don’t overestimate the value of your assets as part of the means test. It’s a common mistake that can wrongly deny you a full or part-pension.
However, you ultimately fund your retirement, planning is crucial. Advice would hopefully pay for itself.
Understand your spending and how those habits will change before and during retirement, then look to investments that offer the best fit.
Consider a mixture of strategies to diversify your risk, manage your tax liabilities and ensure ongoing income.
Above all, timing is key. The further ahead you plan, the more time you have to embrace additional opportunities and do things at the right time to maximise their value. You’ve worked hard and now is your chance to enjoy the fruits of your labour!
Helen Baker is a licensed Australian financial adviser and author of the new book, Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99). Find out more at www.onyourowntwofeet.com.au
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